StrategyQuant Review -Advanced Strategy Building
StrategyQuant is a revolutionary platform for generating and backtesting automated strategies for trading Forex currencies, Equities, ETFs, etc. There is no need for programming skills or special trading knowledge.
Introducing StrategyQuant
The platform offers strategy building using a combination of tools including prices, indicators, price patterns, oscillators, order types, and time values (like time of day, a day of week, etc.). All these parameters are called ‘Building Blocks’ and then combined using logical operators to create entry/exit rules.
StrategyQuant includes also a great number of ready-to-use strategies for any financial market and for any timeframe. The finalized trading strategies can be exported as a MetaTrader-4 or a NinjaTrader Expert Advisor with complete source code.
Compatible Trading Platforms
You can make the StrategyQuant strategies work with Metatrader4 and other platforms
(1) MetaTrader-4
(2) NinjaTrader
(3) TradeStation
System Requirements
The minimum system requirements to use the platform:
-Windows-based system (Vista and above)
-1.2 GHz processor with 512MB RAM and 500 MB HD free space
-For better results, the StrategyQuant team recommends an i5 or i7 processor
Manual Trading with StrategyQuant
You can still use StrategyQuant to generate trading ideas for manual trading. Every strategy that is created by StrategyQuant can be exported to a readable pseudo code with a full description of the trading rules and can be traded manually.
Building Automated Trading Strategies
These are the main features of StrategyQuant at a Glance:
(1) Build an unlimited number of trading strategies for trading any asset in any timeframe
(2) Find already-made strategies and customize them
(3) Optimize a great number of trade strategies and identify the best parameters for performance maximization
(4) Find and use tens of different indicators, StrategyQuant supports also Range/Renko bars
(5) Using all the possible combinations of indicators and orders, StrategyQuant can literally create trillions of different trading strategies
(6) Export your finalized strategies as a MetaTrader Expert Advisor or Ninja Trader strategy with full source code
Strategy Selection Criteria
StrategyQuant allows selecting the data for the computation of your strategy’s criteria. Here are some basic criteria when selecting trading strategies:
(a) Determine the Best Strategies
You can select/unselect from a predefined list of criteria, or you can build your own complex fitness function
(b) Computing Automated Strategy’s Fitness
Selecting the strategy's fitness score from your main data or from your portfolio
How StrategyQuant Really Works
StrategyQuant combines a number of available blocks (indicators, oscillators, historic prices, etc.) to create new trading rules that lead to the generation of a complete trade strategy. Finally, the resulting strategy can be tested based on various methods by using historical data.
One of the greatest advantages of StrategyQuant is its ability for random generation and genetic evolution.
Genetic Evolution
In Genetic Evolution mode, StrategyQuant uses genetic programming techniques to create a ‘generation’ of random strategies, and then this number of strategies is ‘evolved" over successive generations.
StrategyQuant Optimizer
The tool can optimize the main strategy’s parameters to optimal values. The ‘Optimizer’ can be used also for the optimization of Walk-Forward and Walk- Forward Matrix analysis.
Supported Indicators
StrategyQuant currently supports the following indicators:
■ Simple Moving Averages, Exponential Moving Averages, and Weighted Moving Average
■ Triple Exponential Moving Average
■ Commodity Channel Index (CCI)
■ Relative Strength Index (RSI)
■ Stochastic
■ MACD
■ Bollinger Bands
■ Qualitative Quantitative Estimation (QQE)
■ Average Directional Movement Index (ADX)
■ Average True Range (ATR)
■ Momentum
■ Williams %
■ Range and True Range
■ Keltner Channel
■ Parabolic SAR
■ Ichimoku Kinko Hyo
Notes:
(1) There are no real limits as you can use multi-symbol or multi-timeframe indicators
(2) You can use also every MetaTrader indicator in StrategyQuant too
StrategyQuant Order Types
StrategyQuant currently supports the following order types:
-Enter at Market or Enter/Reverse at Market
-Stop Loss or Enter at Stop or Enter at Limit
-Exit After X Bars or Exit Rule (Price + Operators + Indicators, ...)
-Profit Target or move Stop Loss to Break-even
-Stop Trailing and Profit Trailing
Using Historical Data
StrategyQuant comes with four (4) years of historical data for the Forex major, but you can import also data via the MetaTrader platform. The platform includes:
-Data Manager
Manage history data and custom indicators
-History Data
Manage the history data that are used for backtesting (you can import or modify data)
StrategyQuant Backtesting Engine
StrategyQuant allows choosing among different backtesting engines for testing your strategy:
-MetaTrader4
-NinjaTrader
-Tradestation
Monte Carlo Simulation
You can specify the number of simulations, the more tests the better the statistical significance of the results. The optimal value of tests is 10-100.
Backtesting Options
(a) Population size
Population size refers to the number of different strategies in one generation (it should be between 100 - 1000 or even more)
(b) Max Number of Generations
Refers to the number of generations involved in the ‘evolution’ process
(c) Mutation Probability
Refers to the probability that a trading strategy will be mutated (5-15% normal values)
(d) Crossover Probability
Refers to the probability that a trading strategy is selected for crossover operation
Money Management -Position Sizing
StrategyQuant offers three different options for money management:
(1) Fixed Size
The strategy will trade with a fixed number of lots (0.5, 1, 2, 5 lots). This setting is recommended for new strategy building as it offers a clear overview of performance
(2) Fixed Amount
The strategy will risk a fixed amount of money for every trade. This option is recommended for testing the performance of strategies where Stop Loss is based on volatility (ATR)
(3) Risk Fixed % of Trader's Account
The strategy will risk a given percentage (%) of your available equity on every trade. It is the most advanced money management technique and it is highly recommended for real trading conditions
Selecting Among a Great Number of Available Strategies
This is a list of tests:
(1) Overall Profitability
Testing if the net profit result from optimization test exceeds the given value for profitability
(2) The consistency of Achieved Profitability
Checks the percentage of run-parts which are profitable compared to the minimum percentage
(3) Distribution (of Profits)
Measures the impact of every run to overall strategy profit
(4) Maximum Drawdown
Checks the maximum percentage drawdown, compared to the maximum percentage
(5) Minimum Trades
Checks if the minimum number of trades produced in every run is achieved
(6) Walk-Forward Efficiency
Measuring the efficiency of walk-forward testing. For example, if after optimization, the strategy earned $10K and run parts earned $5K then the Walk-Forward Efficiency is 50%
(7) Total Score
Set how many of the above criteria have to pass in order to proceed with the run process each strategy
StrategyQuant Review Conclusions
This is by far the most advanced platform for building automated trading strategies. There are hundreds of available tools and techniques which can be combined to create unique strategies for trading any financial market. What makes StrategyQuant really special is its ability to generate and to evaluate hundreds of different strategies at the same time. The addition of randomness through the use of modules such as Monte-Carlo, walkthrough, and Genetic Evolution makes the platform even more essential for every professional trader wishing to build a fully automated trading strategy that really works.
StrategyQuant requires no programming skills and there is high compatibility with MetaTrader, TradeStation, and NinjaTrader platforms.
■ StrategyQuant Review
ForexExperts.net
